[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 118 Enrolled Bill (ENR)]
S.118
One Hundred Eleventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the fifth day of January, two thousand and ten
An Act
To amend section 202 of the Housing Act of 1959, to improve the program
under such section for supportive housing for the elderly, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

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(a) Short Title.--This Act may be cited as the ``Section 202
Supportive Housing for the Elderly Act of 2010''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

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2d8d593d73cabb40e06a20272cfa53e7646354f8887da7be82f4b798dff20060

TITLE III

-ASSISTED LIVING FACILITIES AND SERVICE-ENRICHED HOUSING

Section 202(f)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(f)(1)) is amended--
(1) by redesignating subparagraphs (F) and (G) as subparagraphs
(G) and (H), respectively; and
(2) by inserting after subparagraph (E) the following new
subparagraph:
``(F) the extent to which the applicant has ensured that a
service coordinator will be employed or otherwise retained for the
housing, who has the managerial capacity and responsibility for
carrying out the actions described in subparagraphs (A) and (B) of
subsection (g)(2);''.

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TITLE I

-NEW CONSTRUCTION REFORMS

Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(h)(1)) is amended, in the matter preceding subparagraph (A), by
inserting ``reasonable'' before ``development cost limitations''.

91095ee7646438188ca27ee0a5e65b3feef6a3f0d73dc7fda09e9a22d5f4b03c

Section 202(j)(3)(A) of the Housing Act of 1959 (12 U.S.C.
1701q(j)(3)(A)) is amended by inserting after the period at the end the
following: ``Such amount shall be used only to cover operating deficits
during the first 3 years of operations and shall not be used to cover
construction shortfalls or inadequate initial project rental assistance
amounts.''.

9928baeb83ba06dbddd00dc5ad4da6c4b1e3638a7cf3500e20a7f164a596cc43

Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C.
1701q(k)(4)) is amended to read as follows:
``(4) The term `private nonprofit organization' means--
``(A) any incorporated private institution or foundation--
``(i) no part of the net earnings of which inures to
the benefit of any member, founder, contributor, or
individual;
``(ii) which has a governing board--
``(I) the membership of which is selected in a
manner to assure that there is significant
representation of the views of the community in which
such housing is located; and
``(II) which is responsible for the operation of
the housing assisted under this section, except that,
in the case of a nonprofit organization that is the
sponsoring organization of multiple housing projects
assisted under this section, the Secretary may
determine the criteria or conditions under which
financial, compliance and other administrative
responsibilities exercised by a single-entity private
nonprofit organization that is the owner corporation
responsible for the operation of an individual housing
project may be shared or transferred to the governing
board of such sponsoring organization; and
``(iii) which is approved by the Secretary as to
financial responsibility; and
``(B) a for-profit limited partnership the sole general
partner of which is--
``(i) an organization meeting the requirements under
subparagraph (A);
``(ii) a for-profit corporation wholly owned and
controlled by one or more organizations meeting the
requirements under subparagraph (A); or
``(iii) a limited liability company wholly owned and
controlled by one or more organizations meeting the
requirements under subparagraph (A).''.

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Paragraph (3) of section 202(l) of the Housing Act of 1959 (12
U.S.C. 1701q(l)(3)) is amended by inserting after the period at the end
the following: ``In complying with this paragraph, the Secretary shall
either operate a national competition for the nonmetropolitan funds or
make allocations to regional offices of the Department of Housing and
Urban Development.''.

3a5cd6d1f8f7ab01888433a4fe06593b89404f377b4ee100f68c31f6a5a6231c

Subsection (a) of section 811 of the American Homeownership and
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended--
(1) in the matter preceding paragraph (1), by inserting ``, for
which the Secretary's consent to prepayment is required,'' after
``Affordable Housing Act)'';
(2) in paragraph (1)--
(A) by inserting ``at least 20 years following'' before
``the maturity date'';
(B) by inserting ``project-based'' before ``rental
assistance payments contract'';
(C) by inserting ``project-based'' before ``rental housing
assistance programs''; and
(D) by inserting ``, or any successor project-based rental
assistance program,'' after ``1701s))'';
(3) by amending paragraph (2) to read as follows:
``(2) the prepayment may involve refinancing of the loan if
such refinancing results in--
``(A) a lower interest rate on the principal of the loan
for the project and in reductions in debt service related to
such loan; or
``(B) a transaction in which the project owner will address
the physical needs of the project, but only if, as a result of
the refinancing--
``(i) the rent charges for unassisted families residing
in the project do not increase or such families are
provided rental assistance under a senior preservation
rental assistance contract for the project pursuant to
subsection (e); and
``(ii) the overall cost for providing rental assistance
under section 8 for the project (if any) is not increased,
except, upon approval by the Secretary to--
``(I) mark-up-to-market contracts pursuant to
section 524(a)(3) of the Multifamily Assisted Housing
Reform and Affordability Act (42 U.S.C. 1437f note), as
such section is carried out by the Secretary for
properties owned by nonprofit organizations; or
``(II) mark-up-to-budget contracts pursuant to
section 524(a)(4) of the Multifamily Assisted Housing
Reform and Affordability Act (42 U.S.C. 1437f note), as
such section is carried out by the Secretary for
properties owned by eligible owners (as such term is
defined in section 202(k) of the Housing Act of 1959
(12 U.S.C. 1701q(k)); and''; and
(4) by adding at the end the following:
``(3) notwithstanding paragraph (2)(A), the prepayment and
refinancing authorized pursuant to paragraph (2)(B) involves an
increase in debt service only in the case of a refinancing of a
project assisted with a loan under such section 202 carrying an
interest rate of 6 percent or lower.''.

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TITLE II

-REFINANCING

Subsection (c) of section 811 of the American Homeownership and
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended--
(1) by striking ``Use of Unexpended Amounts.--'' and inserting
``Use of Proceeds.--'';
(2) by amending the matter preceding paragraph (1) to read as
follows: ``Upon execution of the refinancing for a project pursuant
to this section, the Secretary shall ensure that proceeds are used
in a manner advantageous to tenants of the project, or are used in
the provision of affordable rental housing and related social
services for elderly persons that are tenants of the project or are
tenants of other HUD-assisted senior housing by the private
nonprofit organization project owner, private nonprofit
organization project sponsor, or private nonprofit organization
project developer, including--'';
(3) by amending paragraph (1) to read as follows:
``(1) not more than 15 percent of the cost of increasing the
availability or provision of supportive services, which may include
the financing of service coordinators and congregate services,
except that upon the request of the non-profit owner, sponsor, or
organization and determination of the Secretary, such 15 percent
limitation may be waived to ensure that the use of unexpended
amounts better enables seniors to age in place;'';
(4) in paragraph (2), by inserting before the semicolon the
following; ``, including reducing the number of units by
reconfiguring units that are functionally obsolete, unmarketable,
or not economically viable'';
(5) in paragraph (3), by striking ``or'' at the end;
(6) in paragraph (4), by striking ``according to a pro rata
allocation of shared savings resulting from the refinancing.'' and
inserting a semicolon; and
(7) by adding at the end the following new paragraphs:
``(5) rehabilitation of the project to ensure long-term
viability; and
``(6) the payment to the project owner, sponsor, or third party
developer of a developer's fee in an amount not to exceed or
duplicate--
``(A) in the case of a project refinanced through a State
low income housing tax credit program, the fee permitted by the
low income housing tax credit program as calculated by the
State program as a percentage of acceptable development cost as
defined by that State program; or
``(B) in the case of a project refinanced through any other
source of refinancing, 15 percent of the acceptable development
cost.
For purposes of paragraph (6)(B), the term `acceptable development
cost' shall include, as applicable, the cost of acquisition,
rehabilitation, loan prepayment, initial reserve deposits, and
transaction costs.''.

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Paragraph (1) of section 811(d) of the American Homeownership and
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended--
(1) by striking ``not more than 15 percent of''; and
(2) by inserting before the period at the end the following:
``or other purposes approved by the Secretary''.

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Section 811 of the American Homeownership and Economic Opportunity
Act of 2000 (12 U.S.C. 1701q note) is amended by adding at the end the
following new subsections:
``(e) Senior Preservation Rental Assistance Contracts.--
Notwithstanding any other provision of law, in connection with a
prepayment plan for a project approved under subsection (a) by the
Secretary or as otherwise approved by the Secretary to prevent
displacement of elderly residents of the project in the case of
refinancing or recapitalization and to further preservation and
affordability of such project, the Secretary shall provide project-
based rental assistance for the project under a senior preservation
rental assistance contract, as follows:
``(1) Assistance under the contract shall be made available to
the private nonprofit organization owner--
``(A) for a term of at least 20 years, subject to annual
appropriations; and
``(B) under the same rules governing project-based rental
assistance made available under section 8 of the Housing Act of
1937 or under the rules of such assistance as may be made
available for the project.
``(2) Any projects for which a senior preservation rental
assistance contract is provided shall be subject to a use agreement
to ensure continued project affordability having a term of the
longer of (A) the term of the senior preservation rental assistance
contract, or (B) such term as is required by the new financing.
``(f) Subordination or Assumption of Existing Debt.--In lieu of
prepayment under this section of the indebtedness with respect to a
project, the Secretary may approve--
``(1) in connection with new financing for the project, the
subordination of the loan for the project under section 202 of the
Housing Act of 1959 (as in effect before the enactment of the
Cranston-Gonzalez National Affordable Housing Act) and the
continued subordination of any other existing subordinate debt
previously approved by the Secretary to facilitate preservation of
the project as affordable housing; or
``(2) the assumption (which may include the subordination
described in paragraph (1)) of the loan for the project under such
section 202 in connection with the transfer of the project with
such a loan to a private nonprofit organization.
``(g) Flexible Subsidy Debt.--The Secretary shall waive the
requirement that debt for a project pursuant to the flexible subsidy
program under section 201 of the Housing and Community Development
Amendments of 1978 (12 U.S.C. 1715z-1a) be prepaid in connection with a
prepayment, refinancing, or transfer under this section of a project if
the financial transaction or refinancing cannot be completed without
the waiver.
``(h) Tenant Involvement in Prepayment and Refinancing.--The
Secretary shall not accept an offer to prepay the loan for any project
under section 202 of the Housing Act of 1959 unless the Secretary--
``(1) has determined that the owner of the project has notified
the tenants of the owner's request for approval of a prepayment;
and
``(2) has determined that the owner of the project has provided
the tenants with an opportunity to comment on the owner's request
for approval of a prepayment, including on the description of any
anticipated rehabilitation or other use of the proceeds from the
transaction, and its impacts on project rents, tenant
contributions, or the affordability restrictions for the project,
and that the owner has responded to such comments in writing.
``(i) Definition of Private Nonprofit Organization.--For purposes
of this section, the term `private nonprofit organization' has the
meaning given such term in section 202(k) of the Housing Act of 1959
(12 U.S.C. 1701q(k)).''.

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HOUSING TO ASSISTED LIVING FACILITIES.
(a) Technical Amendment.--The section heading for section 202b of
the Housing Act of 1959 (12 U.S.C. 1701q-2) is amended by inserting
``and other purposes'' after ``assisted living facilities''.
(b) Extension of Grant Authority.--Section 202b(a)(2) of the
Housing Act of 1959 (12 U.S.C. 1701q-2(a)(2)) is amended--
(1) by striking ``(2) Conversion.--Activities'' and inserting
the following:
``(2) Conversion.--
``(A) Assisted living facilities.--Activities''; and
(2) by adding at the end the following:
``(B) Service-enriched housing.--Activities designed to
convert dwelling units in the eligible project to service-
enriched housing for elderly persons.''.
(c) Amendment to Application Process.--Section 202b(c)(1) of the
Housing Act of 1959 (12 U.S.C. 1701q-2(c)(1)) is amended by inserting
``for either an assisted living facility or service-enriched housing''
after ``activities''.
(d) Requirements for Services.--Section 202b(d) of the Housing Act
of 1959 (12 U.S.C. 1701q-2(d)) is amended to read as follows:
``(d) Requirements for Services.--
``(1) Sufficient evidence of firm funding commitments.--The
Secretary may not make a grant under this section for conversion
activities unless an application for a grant submitted pursuant to
subsection (c) contains sufficient evidence, in the determination
of the Secretary, of firm commitments for the funding of services
to be provided in the assisted living facility or service-enriched
housing, which may be provided by third parties.
``(2) Required evidence.--The Secretary shall require evidence
that each recipient of a grant for service-enriched housing under
this section provides relevant and timely disclosure of information
to residents or potential residents of such housing relating to--
``(A) the services that will be available at the property
to each resident, including--
``(i) the right to accept, decline, or choose such
services and to have the choice of provider;
``(ii) the services made available by or contracted
through the grantee;
``(iii) the identity of, and relevant information for,
all agencies or organizations providing any services to
residents, which agencies or organizations shall provide
information regarding all procedures and requirements to
obtain services, any charges or rates for the services, and
the rights and responsibilities of the residents related to
those services;
``(B) the availability, identity, contact information, and
role of the service coordinator; and
``(C) such other information as the Secretary determines to
be appropriate to ensure that residents are adequately informed
of the services options available to promote resident
independence and quality of life.''.
(e) Amendments to Selection Criteria.--Section 202b(e) of the
Housing Act of 1959 (12 U.S.C. 1701q-2(e)) is amended--
(1) in paragraph (2)--
(A) by inserting ``or service-enriched housing'' after
``facilities''; and
(B) by inserting ``service-enriched housing'' after
``facility'';
(2) in paragraph (5), by inserting ``or service-enriched
housing'' after ``facility''; and
(3) in paragraph (6), by inserting ``or service-enriched
housing'' after ``facility''.
(f) Amendments to Section 8 Project-based Assistance.--Section
202b(f) of the Housing Act of 1959 (12 U.S.C. 1701q-2(f)) is amended--
(1) in paragraph (1), by inserting ``or service-enriched
housing'' after ``facilities'' each time that term appears; and
(2) in paragraph (2), by inserting ``or service-enriched
housing'' after ``facility''.
(g) Amendments to Definitions.--Section 202b(g) of the Housing Act
of 1959 (12 U.S.C. 1701q-2(g)) is amended to read as follows:
``(g) Definitions.--For purposes of this section--
``(1) the term `assisted living facility' has the meaning given
such term in section 232(b) of the National Housing Act (1715w(b));
``(2) the term `service-enriched housing' means housing that--
``(A) makes available through licensed or certified third
party service providers supportive services to assist the
residents in carrying out activities of daily living, such as
bathing, dressing, eating, getting in and out of bed or chairs,
walking, going outdoors, using the toilet, laundry, home
management, preparing meals, shopping for personal items,
obtaining and taking medication, managing money, using the
telephone, or performing light or heavy housework, and which
may make available to residents home health care services, such
as nursing and therapy;
``(B) includes the position of service coordinator, which
may be funded as an operating expense of the property;
``(C) provides separate dwelling units for residents, each
of which contains a full kitchen and bathroom and which
includes common rooms and other facilities appropriate for the
provision of supportive services to the residents of the
housing; and
``(D) provides residents with control over health care and
supportive services decisions, including the right to accept,
decline, or choose such services, and to have the choice of
provider; and
``(3) the definitions in section 1701(q)(k) of this title shall
apply.''.

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Clause (iii) of section 8(o)(18)(B) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(18)(B)(iii)) is amended by inserting
before the period at the end the following: ``, except that a family
may be required at the time the family initially receives such
assistance to pay rent in an amount exceeding 40 percent of the monthly
adjusted income of the family by such an amount or percentage that is
reasonable given the services and amenities provided and as the
Secretary deems appropriate.''.

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The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the Senate Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

Section 202 Supportive Housing for the Elderly Act of 2009 — S. 118

Other Sections

TITLE III

TITLE I

TITLE II

TITLE IV

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